Regulation CC – this is the current, full, searchable, electronic version of Regulation CC. Note that Commentary located in Appendix E.
Historical Versions of Regulation CC
Historical information is provided because the press releases and links to Final Rule contain additional information about the changes. This information can be useful to understand what has changed and why. The Federal Reserve Board provides summary and supplementary information to clarify their decisions on particular rules changes.
Changes to Regulation CC Effective July 2020 – includes changes to funds availability provisions within Subpart B of Regulation CC, including implementing statutory requirements to provide inflation updates to dollar amounts, expanding Economic Growth, Regulatory Relief, and Consumer Protection Act coverage to certain American territories and making certain technical changes.
Changes to Regulation CC Effective January 2019 – includes changes to reflect that in today's check collection environment, original paper checks may be unavailable for inspection in certain disputes between banks. When the original check is not available, the final amendments update Regulation CC to include a presumption that a substitute or electronic check was altered in certain cases of doubt. The presumption applies only to disputes between banks and only when one bank has transferred or presented an electronic or substitute check to the other bank; the presumption can be “overcome by a preponderance of evidence that an electronic or substitute check accurately represents the dollar amount and payee as authorized by the drawer, or that the substitute check or electronic check is derived from an original check that is a forgery”.
Changes to Regulation CC Effective July 2018 - changes to reflect the evolution of the check collection system from one that is largely paper-based to one that is virtually all electronic. The amendments create a framework for electronic check collection and return and create new warranties for electronic checks. The final amendments also modify the expeditious-return and notice of nonpayment requirements to create incentives for electronic presentment and return.
ECCHO Rules Information from The Clearing House
ECCHO Rules available in ECCHO Online
ECI Indemnity Claims under ECCHO Rules
The ECCHO Rules Adjustment Matrix allows for an automated ECI indemnity claim using the WIC adjustment type and providing information on the Sample ECI Indemnity claim letter. The Sample ECI Indemnity claim letter can also be used to file a manual claim directly by mail, email, fax, etc. The Sample ECI Indemnity Disclaim Form can be used to disclaim an invalid claim.
RDC Indemnity Claims under ECCHO Rules
The ECCHO Rules Adjustment Matrix has been updated to add the ability to complete an automated RDC indemnity claim using the WIC adjustment type and providing the information on the Sample RDC Indemnity claim letter. The Sample RDC Indemnity claim letter can also be used to file a manual claim directly by mail, email, fax, etc.
Sample Item Identification form
The Sample Item Identification Form can be used by Paper Depositary Bank to request Paying Bank identify which depositary bank was paid for an item in a duplicate scenario in potential RDC indemnity claim. The form can be attached to a Source of Receipt Item information adjustment claim under the ECCHO Rules. See ECCHO Adjustment Matrix for more information.
Sample RDC Indemnity Disclaim form
The Sample RDC Indemnity Disclaim form can be used to disclaim an invalid claim.
Other Resources from The Clearing House
- RDC Indemnity at a Glance – learn about RDC indemnity claims under the ECCHO Rules
- Returns at a Glance - information on amended return requirements
- Definitions at a Glance - information on new and updated Regulation CC defined terms
Operating Circular 3 (OC3) Information from the Federal Reserve Retail Payments Office (RPO)
General requirements and information for submission of the two investigation types, Unauthorized Remotely Created Item (UECI) and Remote Deposit Capture Item (RDC), are reflected in the online Check Adjustments Quick Reference Guide.
See https://www.frbservices.org/news/communications/101521-check-announcing-amendments-operating-circular-3 for more information.
ECI Indemnity Claims under OC3
There are three indemnities for the Electronically Created Item (ECI). A bank that transfers or presents an ECI indemnifies each subsequent bank in the collection and return chain against any loss that results because (i) the item was not derived from a paper check, (ii) the item has already been paid or (iii) the item was not authorized by the account holder. The Warranty / Indemnity Claim (WIC)1 and the Paid Item (PAID)2 investigation type descriptions were expanded to include the ECI indemnities and allow customers to submit claims for those indemnities. An option for the WIC is available to allow banks to submit adjustments for unauthorized ECIs3.
https://www.frbservices.org/resources/financial-services/check/reference-guide/forward-return-types/ueci.html - information on the Warranty/Indemnity Claim (WIC) Associated with Unauthorized Electronically Created Items (UECIs)
RDC Indemnity Claims under OC3
There is also a Remote Deposit Capture (RDC) indemnity that allows a depositary bank that accepts the deposit of the original paper check to recover losses, due to the check having already been paid, directly from a bank that previously permitted its customer to deposit the check through remote deposit capture. A option for the WIC is available to allow banks to submit adjustments to recover the loss of the check.
https://www.frbservices.org/resources/financial-services/check/reference-guide/forward-return-types/rdc.html - information on the Warranty/Indemnity Claim (WIC) Associated with Remote Deposit Capture (RDC) Items
Entry in Error
https://www.frbservices.org/resources/financial-services/check/reference-guide/forward-return-types/err.html- information on an entry from the Federal Reserve that you believe to be in error.